TORONTO, Oct. 6 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company", MAR-TSX) is pleased to announce that the Definitive Feasibility
Study ("DFS") is planned for release in the 4th quarter of 2008.
- Marathon has a strong balance sheet with $18 million in cash and
- supplementary drilling in 2008 is expected to increase the
reliability of the resource estimate
- capital costs for the project are estimated at $400 million
- DFS is based on 22,000 tpd, with annual production of over
200,000 ounces of PGM and gold and 40 million pounds of copper
Phillip Walford, President and CEO said, "Marathon is fortunate to have
the financial resources to enable continued advancement our properties while
maintaining close scrutiny of all expenditures. The Marathon Project's DFS
results to date are encouraging and the work done under the management of
Micon and Raymond Mason, VP Operations, has been exemplary."
While the DFS is progressing well, it proved impossible to complete the
study in September as originally planned. Most components of the DFS have been
completed on time; however one key component has been delayed as a result of
an engineering firm's scheduling issues. Although this delay is disappointing,
the extra time is being put to good use for review and optimizing.
The DFS confirms an increase in mill throughput rate of approximately 22%
over previous estimates to 22,000 tpd, with a projected average annual
production of over 200,000 ounces of PGM and gold and 40 million pounds of
copper. Extensive engineering has been completed in order to optimize the
selection of plant equipment, with a focus on the reduction of both capital
and operating costs. Capital costs are estimated at approximately $400M, and
have taken into account the rapidly escalating labour and material costs in
the current economy.
One of the items that was changed after review was the conceptual
tailings management plan that now minimizes the facility footprint and
potential impacts on the environment. Key public relations initiatives were
successfully completed in the past 12 months, including the establishment of
Memoranda of Understanding with two First Nations Stakeholders proximal to the
Supplementary drilling campaigns were completed in the 3rd Quarter of
2008 on the Benton-JV property in order to include the additional
mineralization in the DFS. The results of the additional drilling are expected
to increase the reliability of the resource estimate.
Marathon's drilling to date has covered less than 6km of the 17km strike
length of the property it has or is earning an interest in. The current
mineable resource is primarily limited to the main Marathon property and does
not include other mineralized zones along strike to the north and south. On
strike potential for developing economic resources will build new future
Phillip Walford, P.Geo., President and CEO is Marathon's Qualified Person
in compliance with National Instrument 43-101 with respect to this release.
Mr. Walford has reviewed the contents for accuracy and has approved this press
release on behalf of Marathon.
About Marathon PGM Corporation:
Marathon is in the process of completing a definitive feasibility study
on the Marathon PGM-Cu deposit, which is nearing completion. Marathon also has
development and exploration stage properties in southeastern Manitoba and
western Newfoundland and Labrador. Marathon's management plans to build on
this focus through the advancement of its properties, focusing on resource
development and by examining other strategic PGM and base metal opportunities
Cautionary Statement Regarding Forward Looking Information:
Except for statements of historical fact relating to the Company, certain
information contained herein constitutes "forward-looking statements".
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These risks and uncertainties include but are not limited to those
identified and reported in Management's Discussion and Analysis for the year
ended December 31, 2007. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
On Behalf of Marathon PGM:
"Phillip C. Walford"
Phillip C. Walford, P.Geo.
President, Chief Executive Officer
For further information:
For further information: David Leng, P.Geo: Tel: (416) 849-3432, Fax:
(416) 861-1925, firstname.lastname@example.org